Canopy Growth is not acquiring Acreage Holdings outright, as reports said Wednesday, but it is preparing to pay billions for the right to buy the U.S.-based pot company.

A source familiar with the negotiations confirmed Wednesday afternoon that a Canopy Growth (ticker: CGC) deal with Acreage Holdings (ACRGF) was “98% done,” though the final price was still being worked out. Acreage had a market capitalization of $2.45 billion as of Wednesday’s close, but the deal will be worth “several billions” in Canadian dollars, the source...

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